Retail Finance

• 75% of customers make their decision on where to shop based on whether interest free credit is easily available (Mintel)
  
• 50% of UK consumers have taken out some sort of retail credit in 2015 (Mintel)
• Retail credit market predicted to grow by 12% over the next five years (Mintel)
  
• ActSmart and V12 scheme accounts for over £100m sales per annum
• 30% of customers spend more than they normally would have done, had finance not been available
• 58% of customers would delay their purchase or not make a purchase at all, had finance not been available
  

Before starting your application we recommend you call 01273 427 700 or email info@actsmart.biz.

Application requirements:

• Acceptance by a finance provider (V12 Finance)
  
• Gold ActSmart subscription
• FCA authorisation (previously know as a CCL) - where necessary
  

ActSmart recommends being accepted by V12 Retail Finance before applying for FCA authorisation.

Acceptance by V12 is subject to terms and conditions, including but not limited to the business declaring a positive net worth and the search results of credit reference agencies.  

Click the above link and use the calculator to show your customers how the duration of the loan agreement and the different APR's affect monthly repayment amounts.

Integrate your website to the V12 Retail Finance Application Gateway.  

The V12 Retail Finance Integration Guide is designed to provide you with comprehensive details on how to integrate your website to the Application Gateway.

The Application Gateway allows finance applications to be submitted, processed, approved and signed online. It offers flexible integration options to integrate as much or as little as desired with retailer's systems. Full integration eradicates the need for double keying of data, saving time and improving the customer experience. Customer information from the retailer's system is passed onto the finance application in the background resulting in a cleaner and more professional process.

View the V12 Retail Finance Integration Guide here.

If you wish to offer 0% finance up to 12 months you no longer need FCA authorisation. Contact us to find out more

Any business wanting to offer interest bearing retail finance or terms longer than 12 months will legally have to apply for, and acquire, the correct Financial Conduct Authority (FCA) authorisation.

FCA authorisations only cost £500 to apply for and then there is an annual fee based on the amount of income derived from financed sales. A typical retailer should expect to pay between £250-£750 per annum for their FCA authorisation.

Managing your FCA authorisation

Failure to create a GABRIEL account and submit information to the FCA within the given timeframe will result in fines.

To avoid fines it is vital you follow the process below as soon as possible after receiving your authorisation.

Once you have your authorisation the FCA will send the approved person an email with their Individual Reference Number (IRN) which will differ from the Firm Reference Number (FRN). You will need your IRN to create your GABRIEL account; if you don't know your IRN contact the FCA on 0300 500 0597.

The email will also have instructions on how to create your FCA GABRIEL account used for submitting figures to the FCA. Please note this is different to the Connect account used to apply for authorisations.

Your GABRIEL account will show you which type of submission is required and when it is due by.

For secondary credit brokering there are two main FCA submissions, CCR007 & CCR008.

For assistance in completing FCA submissions please call the team on 01273 427 700.

Customers can now enjoy their new outdoor products before they start to pay for it with the new 'Deferred Interest Free' product!

Available exclusively to retailers with FCA authorisation, this allows customers to purchase a product, or bundle of products (over £1000) and then pay nothing for 3 or 6 months. After 3 or 6 months the customer pays back the loan in interest free monthly instalments over 12 or 18 months. 

It should be used alongside a retailer's usual finance offering to give customers even more of an incentive to buy immediately, rather than coming back when they have the money in 6 months' time - helping the retailer secure the sale the same day and get their money sooner. 

Contact us today to discuss getting FCA authorisation. We offer full guidance through the application process.

V12 arrange and administer retail finance loans on behalf of Secure Trust Bank PLC, who is the lender. Secure Trust Bank PLC is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

V12 are one of the fastest growing names in retail finance, who work with over 2,000 retailers, from national high street names to independent stores.

Flexibility - Quick and simple online, mobile, in-store and mail order processes

Flexible financial products - tailored options to increase sales

Acceptance rates - a well-established direct lender, we provide excellent acceptance rates

V12 portal - a comprehensive suite of management information which can be accessed in real time

Relationship management - all the support your business needs

V12 Retail Finance Limited. Registered in England and Wales 4585692.
Authorised and regulated by the Financial Conduct Authority. Registration number: 679653.
Registered office: One Arleston Way, Solihull, B90 4LH
Correspondence address: 25-26 Neptune Court, Vanguard Way, Cardiff, CF24 5PJ.

V12 Retail Finance Limited act as a credit broker and introduces to one or more lenders, for which they will receive a commission.

Secure Trust Bank PLC. Registered in England and Wales 541132.
Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. Registration number: 204550. Registered Office for both: One Arleston Way, Solihull, B90 4LH.

V12 Retail Finance is a trading name of Secure Trust Bank PLC.

Watch the video below for a walkthrough of the V12 Finance application form.

Watch the video below to see how simple and efficient the V12 Finance system is.

Q: I want to offer retail finance, how long will I have to wait?
A: The process for new applicants does not take long with V12. However, if you are applying for FCA authorisation this can take up to 6 weeks.

Q: Do I need FCA authorisation (the new name for a Consumer Credit Licence CCL) before offering retail finance?
A: If you only want to offer 0% finance up to 12 months, you do not need FCA authorisation. However, a current FCA authorisation for limited permission credit brokering is needed to offer all other finance options. Please note that we recommend that you have V12 approval before paying for your FCA authorisation.

Q: How do I get FCA authorisation?
A: Authorisations to offer retail finance are issued by the Financial Conduct Authority (FCA). Please click here for current information and to apply.

Q: My business is less than 2 years old and has been refused retail finance by other companies. Is the ActSmart scheme more flexible?
A: V12 will consider applications from businesses that can provide 12 months of audited accounts. Other cases where this is not possible may be considered on an individual basis - please contact ActSmart if this is the case.

Q: I am worried about the cost of finance eating into my margin?
A: Retail Finance has a proven track record of increasing the average sales price of a transaction throughout high ticket retail in the UK. By increasing the size of the sale you can fund the subsidy and still make more £'s profit; that's the reason why retail finance is core to industries such as furniture and is now in such demand within the cycle, snow and outdoors industries.

Q: I think I should be doing more business via the scheme, what am I doing wrong?
A: The most important issue here is whether it is evident to your customers. Are you promoting retail finance in your shop as strongly as you are your products?
The retailers that do the most business via finance promote it powerfully to their customers. It's incorporated into window and shop displays with point of sale evident throughout the shop and, where applicable, on websites. Staff are briefed about promoting it as part of the sales process, using it to up-sell.
Interest free credit in particular, is a strong, established sales tool and it can get people through the door in the first place and is fundamental to many high ticket retail businesses, a marketing tool in its own right. Keeping finance information under the till, with no marketing presence in store clearly isn't going to create volume sales.

To find out how to make the most of retail finance, contact us for a brochure

Q: Can I include accessories in the finance package?
A: Yes. Retail finance doesn't just include the bigger items of equipment - it can be used when the customer is buying accessories as well, which provides an ideal situation for up-selling. For example a bike purchase could easily lead to purchase of clothing, protective equipment and bike racks etc.

Q: Can I promote retail finance to consumers myself?
A: Yes you can. All consumer-facing adverts or online promotions need to adhere to the Consumer Credit (Advertisements) Regulations 2010 to avoid risk of prosecution.

“We chose to go with V12 because the integration options available are much better than those offered by other finance providers”

“Having tried other finance providers we found that the number of successful applications was significantly higher through V12 than those we’ve gone with in the past”

“We have been using V12 for some time now and cannot speak highly enough of the service they provide not just us, but our customers as well.”

Retail finance is exclusively available to Gold ActSmart subscribers in the Outdoor Pursuits sectors. Subject to terms and conditions, including but not limited to, a minimum 12 month trading history, the business declaring a positive net worth and the search results of credit reference agencies. 

Click here to join ActSmart or login to My ActSmart to upgrade your subscription.